Metric-Driven Management System

gear-organizational-effectivenessPerformance contracts provide specificity. These include measures and targets linked to the organization’s Financial, Customer, Internal Process, and Employee objectives. From Beyond Performance, performance contracts serve as the basis for a metrics driven reporting system because they are “accountability driven by clear objectives and formal, explicit performance targets.” This in turn leads to what is termed “consequence management” linking rewards and consequences to individual performance. Compensation becomes clear, and bonus systems are understood.

Back to Organization Effectiveness